MARKET ANALYSIS

OBJECTIVES

At the end of the lesson, the students will be able to

• describe the marketing process and how it contributes
to marketing strategies and business decisions
• discuss market analysis and aspect to be considered
• discuss SWOT Analysis as a tool for market analysis
• describe how the SWOT Matrix aids in formulating
market strategies
 INTRODUCTION

The marketing process

involves activities undertaken
to identify business
opportunities, select target
markets, develop the Business
opportuniti
marketing mix to address the es
needs and wants of the target
market, and implement Implement
strategies to guide and manage Strategies
marketing efforts
DISCUSSION

An essential aspect of the marketing process is strategic planning, where

the business defines its goals and objectives and identifies strategies
that will bring about their achievement.

The major steps in the marketing process are:

1. market analysis
2. marketing planning
3. Implementation
4. control
The diagram outlines the major steps in the marketing process:
The firm analyzes the business environment and identifies
Market opportunities to satisfy unfulfilled customer needs; the firm also looks
Analysis into its capabilities to address the needs of the market as well as other
challenges in the business environment

Marketing Strategies are identified to pursue marketing opportunities; the firm

Planning select a specific market, develop the marketing mix, and positions the
product or service within the market.

Marketing strategies are executed through specific action such as

Marketing
Implementatio mobilizing resources and manpower, completing task, determining the
n budget, implementing policies, establishing a timeline and coordinating
marketing activities.

Marketing efforts are monitored and adjustments are made in reaction

Marketing
Control to changes in the market; the firm aims to consistently meet the needs
of its customers over the long term.
The first step in the marketing process is market analysis. It is done to
determine the attractiveness of the market, formulate marketing
strategies and make business decisions.

The following are the aspects considered in conducting market analysis:

1. Market size is determined by sales volume and is used to find out the
profitability of the market.
2. Market Trends focus on price and spending patterns
3. Cost Structure determines and evaluates the resources needed to
create a product or provide a service.
4. Distribution Channel take into account existing and new channels.
5. Technology and resources involve an analysis of their impact on
production as well as other aspects of marketing.
Apart from determining the viability of potential markets, market
analysis also lets marketers analyze the capabilities of the company
in relation to the business environment.

SWOT Analysis is an important tool in conducting environmental

analysis. This take into consideration the internal and external forces
which influence the market and performance of the company.

The following are the major aspects of SWOT Analysis:

Strengths Weaknesses Opportunities Threats

Strengths
• Refer to the company’s competencies and competitive advantage that give it an
edge over the competition.

Weaknesses
• Pertain to the companies limitations in developing and implementing marketing
strategies.

Opportunities
• Are market conditions which give the company a chance to succeed should it
decide to exploit them.

Threats
• Are hindrances that prevent the company from achieving its goals.
SWOT ANALYSIS

• Strengths include the company’s valuable attributes that give it

a competitive advantage.

• Weaknesses refer to attributes that need to be improved or

enhanced.

• Opportunities are current trends which maybe advantageous to

the company in a long term or in the immediate future.

• Threats are external movements which may negatively impact

the company.
SWOT ANALYSIS

• Strengths:
What does your company do better than others?
• Weaknesses:
Which aspects of your company need to be improved?
• Opportunities:
What conditions and trends can positively impact your company?
• Threats:
What conditions and trends can negatively impact your company?
 After conducting a SWOT analysis, a company can then formulate
strategies accordingly using the SWOT Matrix
SWOT MATRIX
INTERNAL/EXTERNAL OPPORTUNITIES(external) THREATS (external)
STRENGTHS (internal) STRENGTHS-OPPORTINITUES (SO) STRENGTHS-THREATS
Strategies (ST) Strategies

Which of the company’s strengths can How can the strengths be used to
be used to take advantage of the minimize the threats that were
opportunities identified? identified?

WEAKNESSES (internal) WEAKNESSES-OPPORTUNITIES WEAKNESSES-THREATS

(WO) Strategies (WT) Strategies

How can the identified opportunities be How can the weaknesses be minimized
used to do something with the to avoid the impending threats
company’s weaknesses? identified?